If you are thinking, is Hyderabad a metro city for HRA, then let me tell you, no. Hyderabad is not classified as a metro city for the purpose of House Rent Allowance tax exemption under the Indian Income Tax Act. This classification directly impacts the percentage of HRA that can be claimed as tax-exempt. I have shared the list of metro cities for HRA below.
Is Hyderabad Metro City as per HRA?
No. Despite Hyderabad's significant growth and recognition as a major urban center, it remains categorised as a non-metro city for HRA purposes.
For the purposes of calculating HRA, Delhi, Mumbai, Kolkata, and Chennai are categorised as metro areas. Under Section 10(13A) of the Income Tax Act, the HRA exemption is calculated as the least of the following:
Actual HRA received.
Rent paid minus 10% of salary (basic + dearness allowance, if applicable).
50% of salary if residing in a metro city (Delhi, Mumbai, Kolkata, or Chennai), or 40% if residing in a non-metro city.
Salaried individuals residing in Hyderabad can claim a maximum of 40% of their salary as HRA exemption, rather than the 50% allowed for metro cities. I hope you found this helpful.
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Let me resolve your query: Is Hyderabad a metro city for HRA? No, Hyderabad is not a metro city for HRA as per Income Tax act. Hyderabad
is a metropolitan city in India.
The division of cities for providing the House Rent Allowance (HRA) depends on the policies of employers and government regulations.
HRA is given by employers to employees to help them meet the cost of accommodation. The division of cities for HRA purposes is based on many factors. It includes population, infrastructure, and amenities.
Hyderabad is a Tier-I city. Many companies provide HRA to employees working in such cities. The present HRA in Hyderabad is 40% of the basic salary of the employee.
If you have any query about your HRA, you can ask your employer or the relevant government authorities. These are the details about
HRA in Hyderabad.
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Is Rent Agreement Mandatory for HRA Exemption?
Is Hyderabad a Metro City for HRA?
Seerat Mishra
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2 Year
2023-12-22T16:39:26+00:00 2025-03-17T10:13:07+00:00Comment
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